Why are pegged exchange rates often overvalued and difficult to governments to maintain?
What will be an ideal response?
Answer: Governments that maintain a pegged exchange rate often find the position difficult to maintain. Too often, the exchange rate overvalues the local currency on the foreign exchange markets. This situation produces a surplus supply of the local currency resulting in a mass exodus of local currency holders who will turn in the currency to the central bank for a foreign currency to invest it abroad. Since this process depletes the bank's official reserves, the only way to maintain the peg is to impose currency controls.
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Period costs are
A) found on the balance sheet. B) not involved in the production process. C) classified as direct labor, direct material, or factory overhead. D) found on the job order cost sheets.
A recommended group size for brainstorming is about how many members?
A) 2 to 4 B) 5 to 7 C) 8 to 14 D) 15 to 20
The most risky types of marketing opportunity to pursue usually involve
A. product development. B. market penetration. C. diversification. D. market development. E. All of these are equally risky.